Capital — and access to it — has long remained the lifeblood for industry at large. But somewhere along the way, obtaining capital became difficult. The lending process is increasingly drawn out, and businesses that need quick access to capital to survive are finding themselves in dire situations, unable to make ends meet. Fortunately, times are changing.
Understanding the Inefficiencies in the Existing Lending Ecosystem
Today, SMBs that need capital often turn to a third-party lender like a bank, credit union or alternative lenders to get funding. The application process for this can drag on as these busy business owners assemble documents, hunt down records, and fill out dozens of required forms. Once their application is submitted, it can take weeks before they’re approved for a loan — since many lenders rely on manual approval processes — if they are approved at all.
This system is not only needlessly lengthy, but it also misses the mark. Without a full picture of an applicant’s financial outlook and day-to-day operations, lenders sometimes factor trivial, unrelated details into their final decision, meaning SMBs may not get the best deal or rate possible.
But where there is inefficiency, there is also opportunity. Today’s SaaS companies are looking for new ways to expand their product portfolio and better serve their SMB customers with a full suite of products that meet their needs, including access to capital. For these companies, many of which already have access to key financial data on their SMB customers, providing lending services seems like a no-brainer. This is where Lendflow comes into play.
How Lendflow is Revolutionizing Embedded Finance
At Lendflow, we combine a robust marketplace with contextual product placements and powerful data services to empower vertical SaaS companies to build, enhance, or embed financial products within their ecosystem. No matter their level of experience, SaaS companies can start facilitating access to capital to their SMB customers within a matter of days — with Lendflow.
- Unites key stakeholders: We connect SaaS companies to a vast marketplace of lenders ready to deliver their services to a new network of SMB customers.
- Applies powerful data services: Our robust data capabilities, including data aggregation, orchestration, decisioning, monitoring, and more provide SaaS companies and lenders with important credit data, including personal credit, business credit, social scoring, KYC, and so much more, as well as powerful decisioning tools. This allows lenders to better assess risk and provide more tailored, competitive loan offers to SMBs.
- Automates manual processes: With Lendflow, manual processes become a thing of the past for those issuing credit. Our comprehensive APIs gather data from a variety of data service providers into one easy-to-access location to streamline the loan approval process and connect SMBs to capital — fast.
- Serves as a springboard for advanced opportunities: Over time, SaaS companies can gather insights into their SMB customers' behavioral patterns and use the Lendflow platform to build their own capital programs that let them be the lender. And if they’re not ready to lend, it’s not a problem — SaaS companies can connect to our marketplace of financial institutions for as long as they like.
- Fosters innovation: Our API and detailed dashboards equip SaaS companies with the tools and data they need to optimize their platforms and iterate on new ideas in real time. This new cycle allows SaaS companies to diversify their monetization strategies and create more engaging product lines in the face of increasing competition.
Leapfrog the Competition with Lendflow
Let’s face the reality: Many SMBs will need to borrow money at some point to scale or simply cover their ongoing costs. Embedded lending allows vertical SaaS companies to fill this need while simultaneously improving their product stickiness, NPS rating, and more.
Whether you’re looking to launch your first embedded finance project or you want to become a lender yourself, Lendflow has the tools you need to achieve your goals and diversify your suite of services. No matter where you are in your journey, Lendflow is here to partner with you and catalyze your objectives. Contact us today to get started!